As the the remaining lease term of a Chalfont St Peter residential lease diminished so does its value and therefore the value of your property. If the residual term has, over 100 years to run then this decrease may be negligible nevertheless there will become a point in time when a lease has under than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should extend the lease without delay. Most flat owners in Chalfont St Peter will meet the qualifying criteria; that being said a conveyancing solicitor can advise whether you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally considered that a property with over 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Lease extensions in Chalfont St Peter can be a difficult process. We recommend you get guidance from a conveyancing solicitor and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Chalfont St Peter lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Henry, came precariously close to the 80-year threshold with the lease on his purpose- built flat in Chalfont St Peter. In buying his home two decades ago, the unexpired term was of no interest. Luckily, he recognised he would imminently be paying an inflated amount for Extending the lease. Henry extended the lease just ahead of time in June. Henry and the landlord who owned the flat above in the end agreed on a premium of £5,000 . If the lease had descended below 80 years, the figure would have become more costly by at least £950.
In 2013 we were called by Mrs Laura André who, having bought a one bedroom flat in Chalfont St Peter in March 2011. The dilemma was if we could estimate the price would be for a 90 year lease extension. Comparative properties in Chalfont St Peter with an extended lease were in the region of £166,800. The average ground rent payable was £50 collected every twelve months. The lease ended on 24 June 2074. Taking into account 50 years unexpired we approximated the premium to the landlord for the lease extension to be within £32,300 and £37,400 exclusive of legals.
An example of a Lease Extension matter before the tribunal for a Chalfont St Peter premises is Flats 8, 11 and 15 Craigmore Court 46 Murray Road in December 2013. The tribunal held that the price payable by the Applicant tenant of Flat 8 to acquire an extended lease shall be £26,438 plus £1 to the intermediate lessee . The tribunal held that the price payable by the Applicant tenants of Flat 11 to acquire an extended lease shall be £26,791 plus £1 to the intermediate lessee. The tribunal held that the price payable by the Applicant tenant of Flat 15 to acquire an extended lease shall be £26,638 plus £1 to the intermediate lessee . This case was in relation to 3 flats. The unexpired term as at the valuation date was 71 years.